We’re entering a tricky time of year: September and October have a reputation for bringing an extra measure of market volatility. Some of the stock market’s most challenging events have hit in September and October, and other seasonal trends can also play a part. Investopedia found that institutions start preparing for year-end distributions around this time. Plus, individuals tend to reposition their portfolios after the summer months. This chart shows the average weekly S&P 500 performance since 1923. I’ve highlighted September and October so you can see how they compare to the rest of the year. |
So what’s an investor to do? Just be prepared to roll with an uptick in volatility, and don’t let seasonal trading influence your overall strategy. |
These Months are More Volatile Than Others
